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Fidelity Blue Chip Growth's Conservatism Pays Off

Attention to valuations is a plus in this market.

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Keeping an eye on price has been right for Fidelity Blue Chip Growth Fund (FBGRX).

This fund's technology stake isn't small, but some of its more-aggressive peers have, to their detriment, stashed considerably more in the sector. According to Fidelity, manager John McDowell had put 31% of the fund's assets in tech stocks as of December 31, 2000, while the typical large-growth offering had stashed 39% there. McDowell is more sensitive to valuations than a lot of large-growth managers, so that underweight is no surprise. Moreover, within tech McDowell's valuation consciousness has kept him out of speculative Internet-related fare. That gave the fund a leg up on its peers in 2000's tech bloodbath, when it outpaced its average rival by three percentage points. For the year to date through February 12, 2001, the fund is also ahead of nearly two thirds of its peers.

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Scott Cooley does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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